Tale of two interims
Page 59
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rIEW if any influences affect share price movements more sharply than the amount of the distribution. This was amply proved in a couple of cases this week: Robert B. Massey and United Carriers.
The coachbuilding and plastics division of Robert B. Massey worked to capacity during the first half of the current trading year and sales of cars and commercial vehicles were only slightly lower than during the same period the previous year. In total this group achieved a marginal increase in both sales and profits for the six months compared with the previous year's first half.
But although chairman Mr. Robert B. Massey is optimistic about the future—steady expansion and profitability the necessity to conserve liquid resources has caused the directors to omit the payment of an interim dividend. The payment of a dividend must, they state, await the results for the full year.
A year ago the half-way-stage payment was 5 per cent, followed by a final payment of ID per cent. My own view is that this total will be repeated this year; and several people in the market feel likewise. But this did not prevent 6d. being lopped off the price of these shares initially following the news, to put them at a new
"low" for 1966 of 6s. 6d. They regained the loss later.
United Carriers reported that group pre-tax profit for the first half of the present trading year amounted to £141,007, which compared with £147,759 the previous year. Net profit came out at £85,670 against £87,593 in respect of the same six months a year ago. Last year the interim dividend was 11 per cent on account of tax reasons. This time the payment is to be 8 per cent. The price of these shares eased 4-1-d. to 7s. 3d. following the news. The interim report comments that business remains at a high level with little sign of it diminishing. Nevertheless, because of the uncertainties stemming from the country's economic difficulties, chairman Mr. G. Willis declines to forecast the profits for the current year.
The chairman of Seddon Diesel Vehicles, Mr. H. Redmond, tells shareholders in his latest annual review that short of being over-optimistic he is "fairly confident" that the group will maintain turnover during the current year. During the first four months there was a rise of 10+ per cent; the order book is full for some way ahead.